The Role of Environmental Accounting in Encouraging Corporate Sustainability: Literature Review

Mutmainah Mutmainah, Abdul Rahman

Abstract


This research aims to delve into the role of environmental accounting as a driver of corporate
sustainability using a qualitative approach and literature review method. Secondary data is derived from rel-evant studies, and data analysis employs the liter-ature review prism with filtering based on title, feasibility, and inclusion criteria. Findings indicate that green innovation influences environmental management ac-counting (EMA), subsequently affecting corporate value. The study also high-lights the positive impact of using green accounting in incorporating environmental costs into the financial results of company operations. Furthermore, the relationship between coercive pressure and EMA adoption varies based on firm size, and
envi-ronmental information disclosure has a direct positive impact on corporate financial performance. Im-plications of the research encompass both practical and conceptual recommendations. Practically, companies can leverage green innovation to reinforce environmental accounting and enhance corporate value. Addition-ally, understand-ing that firm size moderates the relationship between coercive pressure and EMA adoption can assist companies in tailoring their strategies to specific contexts. Con-ceptually, the study contributes to
environmental accounting literature by affirming that the integration of green accounting can improve corpo-rate financial perfor-mance.

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Publihser:
Universitas Ahmad Dahlan

Editorial Address:
Yogyakarta

This work is licensed under CC BY 4.0